Dr. H. Assadi, Vice President

Toward Globalization: The auto-industry is now in a position to move within the framework of a pre-determined plan as well as strategies engineered for 10-year terms. Presently, it is heading toward globalization and to this end a set of objectives are being devised. For this purpose, we conducted a market study to find out the market requirements and how we should react so that we would not devise unattainable objectives. As a result of our study, we concluded that around 500,000 cars per year can be supplied to the Iranian market within the next three or four years. Being the largest car manufacturer, Iran Khodro will by far have the largest share of this market, and will hit this target easily.

M. Khooshemehri, Director of International Cooperation Affairs

A New Company Emerges: Iran Khodro Industries Development Co. (IKID Co.) was established two years ago and is only a fledgling company. Since Iran Khodro has undergone major developments and transformations, including a transition from a mere assembly company to a full-scale car manufacturer, it has appointed IKID Co. as its investment arm. The company is assigned to invest in subsidiaries which are more than 60 in number. Some of these subsidiaries manufacture parts, some components and some others end-products. In line with its investment duties, the company has proposed various projects within the short period of the past two years, some of which will be implemented by March 2001.

A Balance of Quality and Cost

Set to Compete: But in order to enter the highly competitive international market we would have to focus on Quality and Cost. We set out special strategies toward this goal and are putting great efforts into it. These strategies necessitated the creation of an organization which would handle all development and expansion plans. Research and development could either be handled by part of the companies themselves or a whole new company could be assigned to handle this. Therefore, we were given the responsibility of investing in all the subsidiaries of Iran Khodro. When we talk about Iran Khodro, we are actually speaking about the Iranian auto-industry because of its market share and large-scale operations. The significant role of the auto-industry in our economy is undeniable and we are passing through this transition. Foreign media now in fact recognize us as an auto manufacturer rather than an assembler.

Investment & Profits: IKID Co. has turned into an investment company but not in the strict sense of a holding or investment company. We should in fact invest in such areas which would ultimately lead to our feeding of Iran Khodro’s production lines. What is achieved at the end of the production line is to the benefit of all. According to our agreements with Iran Khodro, there are now more than 60 Iran Khodro subsidiaries affiliated to IKID Co., some of which have their own affiliates. Out of these, more than 10 are quoted in the Tehran Stock Exchange and another eight are to be listed very soon. This means that we would embark on privatizing our subsidiaries and hopefully reach what has always been the goal of Iran Khodro’s top management.

To Provide the Missing Links

An Eye on Exports: IKID Co. will help Iran Khodro meet its needs within the framework of research and development, and will in fact provide the missing links. When we get to the stage where we feel we can supply the market in addition to feeding Iran Khodro’s production lines, we will move on to exports. Taking advantage of exports is one of those activities that we shall handle in the development plans assigned to us. When we get to the stage where we feel confident that we can feed the production lines, we will have an eye on exports.

Credit Institutions: Since we have huge financial transactions, we felt the need to set up credit institutions of our own some of which are presently operational. We are working on international insurance in Iran’s free trade zones (FTZs), and considering to engage in Leasing and Offshore Banking. We have witnessed that information technology is yet to take place appropriately in banking, financial activities and credit institutions. As a result, we were prompted to take steps for the creation of an ASP in our group.

Beyond Borders: We have conducted extensive market studies, and have worked on developing and developed countries. In this regard, mention can be made of our joint ventures in Morocco, Egypt and Malaysia.
In Europe, owing to our close ties with Peugeot, we intend to establish contact with major technology holders as a means of supporting our parts supply chain. In Italy, France and Germany we have conducted large-scale activities toward technology transfer and partnerships.

Sustainable Development on Agenda

Conclusion: IKID Co. will pursue global expansion including International Marketing, Partnerships, Joint Ventures, Mergers, International Leasing, Offshore Banking, Fleet Ownership and Financial & Insurance Services.
It must be concluded that IKID Co., as a core business, will attach importance to the production and supply of high-quality automotive parts and components in the global cooperation, within the framework of Iran Khodro policies and objectives.